What we teach our children in their formative years has a huge impact on how responsible and independent they become as adults. Starting them young ensures that they will at the very least have their basics covered.
Knowing the difference between living comfortably and living lavishly is something that we need to teach them since the beginning. Knowing about saving accounts, emergency funds, sinking funds, and different forms of investments might seem like an adult thing, but starting them young doesn’t do any harm.
If anything it will get them interested in handling finances. Teach them using examples because technical terms might get a little confusing in the beginning. Teach them about services like 24Cash.ca that they can use to get a little help with a quick loan that could be paid up in 90 days.
When I was young, my dad was against loans, so we always got things that were in our budget. When it came to buying a new house, he still didn’t want to get a loan. So, instead of getting a great place, we settled for something else. It wasn’t a good locality so it did more harm to our mental peace than good about having our own home.
Eventually, my dad started taking loans. He took a loan on our home and bought another, then paid it off, and took a loan on another and bought a vehicle. He always used the loan to get something, paid it off, then took another on the new thing, and made another investment.
This taught me that living within means doesn’t mean not dabbling even a bit into loans and debts. It actually means being responsible about it. This is what I learned when I was a kid.
When you start giving them pocket money, teach them to keep a log of how much they got, how much they spent and what they spent on, and how much money they saved till the next pocket money. Teach them not to take advances on their pocket money because that is called living within means. Teach them the importance of saving because they won’t be getting more money before the next set date.
If they want to buy something that is expensive, teach them to save money from the pocket money by cutting back on things like sweets and candies. Let them take on extra work around the household for more pocket money. This will help them learn all the basic lessons needed to create a financial cushion for themselves in the future.
When they are very young and can’t get the hold of money matters. Use real-life examples to teach them financial responsibility in doses. Like, my dad’s learning process became a lesson for me, you involving your kids will teach them things that you might not be able to in words.